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Crypto miner Bitfarms settled $21 million debt to bankrupt crypto lender BlockFi with $7.75 million one-time cash payment, according to a Feb. 9 press release statement.
Bitfarm agreed with BlockFi to restructure the debt and repay the principal and unpaid interest in a single transaction.
The initial loan is a $32 million equipment financing facility offered by BlockFi on February 18, 2022. With the repayment of the loan, Bitfarms 6,100 miners’ collateral for the loan is no longer encumbered.
Bitfarms said the repayment of the loan further reduced its debts from $165 million in June 2022 to $25 million, representing an 85% decrease in less than nine months.
Bitfarms CFO Jeff Lucas said:
“This successful negotiation and settlement reinforces our initiatives to reduce leverage, improve liquidity and increase financial flexibility consistent with current market conditions.”
BlockFi was one of the most important financiers for crypto miners in 2021 and 2022, but now it has several bad debts. Bloomberg reported that the company was looking to sell $160 million in loans to miners.
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